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New annual tax on securities accounts adopted in plenary session by the Parliament

The Parliament adopted yesterday in plenary session the tax on securities accounts.

Compared to the draft law, only one technical amendment was made, clarifying that securities accounts that are part of the property of a Belgian establishment (i.e. a non-resident for income tax purposes) are in principle also in scope irrespective of whether the account is held with a Belgian or foreign financial intermediary. Other proposed amendments were not withheld.

 As a reminder, the tax applies in principle to securities accounts held by resident and non-resident individuals, companies and legal entities (including legal constructions subject to the Cayman tax). Exemptions are foreseen for certain financial institutions that hold a securities account for their own account as well as for non-residents who hold the account for their own account with "a central securities depository" or with an account licensed by the NBB "deposit bank" that performs similar functions.

The new tax concerns all securities (including cash on the securities account,) if the average value of the securities account exceeds € 1.000.000 (then the tax is due on the entire average value). The rate of taxation of 0,15% will apply on the average value of a securities account.

 

The law will now be published in the Belgian Official Gazette to come into force as from the first day after its publication. The anti-abuse provisions will, however, apply retroactively as from 30 October 2020. So any transaction done as from 30 October 2020 will be deemed abusive (unless evidence to the contrary) and not taken into account in the application of the regime (i.e. taxation as if the transaction did not take place).

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Kris Lievens
Partner

Corporate Tax
Brussels

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